Banco Espírito Santo Shares Plummet

Some Strategists Troubled By Bank's Common Equity Tier 1 Ratio

Shares in Banco Espírito Santo SA plummeted as much as 50% Thursday while its bonds also plunged, suggesting the most resilient shareholders are finally yanking their money out of the troubled lender in a long-drawn-out Portuguese banking drama.

Late on Wednesday, Portugal's No. 2 lender by assets, which brought in new management earlier this month, reported a record €3.49 billion ($4.68 billion) net loss for the second quarter,...